It has been observed that one of the factors that leads a country to borrow money is its inability to run its day-to-day affairs because the essence of borrowing or collecting loans is to be used for them for either personal or public projects that’ll bring solution to a certain problem.
Permit me to express my opinion on the above subject matter even though I’m not a financial analyst or someone who has insight on how debt management.
To begin with, as far as I’m concerned there’s nothing wrong with Nigeria’s debts. in fact, it’s difficult to cite an example of a single country or organisation that is not indebted, but what makes a debt to be good or bad is how the borrowed money is spent.
For instance, the United States of America is currently indebted. As a matter of fact, US is rated as the highest indebted country in the world, yet it’s the most developed.
One may ask or wonder why America is the most developed country in the world despite its huge debts. The reason is that they spend a chunk the borrowed money on projects that boost their internal revenue generation or that attract foreign investments. They build healths care facilities, educational institutions, among many other developmental projects. Similarity, Lagos state of Nigeria falls in this category.
But whenever a country, state, organisation or an individual spends the largest percentage of its borrowed money on a project that will not add value to his or their betterment, such as luxury or government officials’ running cost, among others, then definitely that money will be of no use.
Abubakar Muhammad Sani,Kaduna[email protected]
